Why you have to be careful about the cheques issue
An overview Cheques are the most common, safe and authentic way of making any financial transaction in both business as well as personal world. But, what happens when the cheque issued by the payer to the beneficiary bounces? Primarily, dishonoring of a cheque hampers the credibility of the payer and causes unjust inconvenience to the payee. Legally, it is a punishable offence. In India, there are numerous pending cases in the courts on the same that needs to be adjudicated.
What are the various grounds on which a cheque can be bounced by the banks? Insufficient funds in the issuer’s bank Signature mismatch Date mentioned on the cheque is disfigured or unreadable Invalidity of cheque (As cheque is valid only for 3 months from the date mentioned on the face of the document) Mismatch in the amount in words and numbers Damaged or torn cheque Overwriting/scrawling on the cheque Any suspicion of forgery/fraud by the bank
What are the main grounds that cause dishonor of the cheque as legally enforceable offence? In accordance to Section 138 of the Negotiable Instrument Act, 1881, a cheque issued by the payer to the payee to meet any debt/liability, if dishonored by the bank due to following reasons, attracts punishment:-
Insufficient funds in the account of the payer The amount of the cheque is more than the amount arranged to be paid in agreement with the bank
Clients can make payments to the Lawyers in a hassle-free, fast and secure way. Through automatic receipt generation the Lawyers and Client can keep a track of the payment being made. Lawyer will directly receive this payment in their respective bank accounts .
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